My wife and I went to York at the weekend for a little treat, and as we walked into town from the train station were greeted with the longest queue we have ever seen coming from Northern Rock.

No shockers there with its current problems.

Lending aside, the biggest problem Northern Rock currently has is a self-perpetuating PR crisis.

The first few people panicing and queuing to take their money out made others panic and join the queue. And that then makes more people panic.

We’re probably at the point now where people who were unmoved on Friday will be worried this morning by reports that £2 BILLION has been taken out already. I know if I had money in Northern Rock I’d probably be thinking very hard about it today.

While I was taking photos of the queue in York (hey, you don’t see this stuff every day) a retired man stopped to tell us he’s seen the same thing happen in Derby in the 70s or 80s, when a building society got into trouble. There were pictures of people taking wheelbarrows of cash out, which of course attracted more people to do the same.

Northern Rock seems to be doing the best it can – making it easier for customers to get their money out by opening longer. It’s hard to see what else it could do to stop the panic.

UPDATE: Monday 17th September at 6pm: And with one move, the government kills the PR crisis. Good move. Lets hope it works.

Tags: Northern Rock

This entry was posted on Monday, September 17th, 2007 at 6:01 pm and is filed under Bad PR, In the news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.